Even so, he is already lecturing on the tools investors can supposedly use to grab a 50 percent return right now. The bespectacled gentleman, in turn, is visibly working to project a serious impression in front of his flip chart as he explains the tricks that are sure to make you a millionaire in 2017.
Purveyors of ideas, advice and life coaching are popular on video platforms such as YouTube, where they sometimes rack up hundreds of thousands of views. The clips usually revolve around everyday topics like cooking, make-up, studying or consumer electronics. But private investors have joined the ranks of video bloggers too, passing on their recommendations and experiences to others. They take advantage of the fact that many people feel uncertain about financial matters, have lost faith in their bank adviser or their previous investments, and are now looking for a way out of the low-interest or debt trap.
Unmasking the black sheep
There is a catch, though: the protagonists who present themselves in front of the camera as insiders and experts are, as a rule, self-taught at best or complete amateurs at worst. As long as it's about the perfect roast with crackling or the right eyeshadow to match your nail polish, the possible risks and side effects are manageable. But when the talk turns to risky leveraged products, the picture changes. Anyone who lets their investment decision be swayed here is risking losses to their assets.
On top of that, these video bloggers aren't acting out of pure altruism. They earn money from the advertising that runs before their clips. Which is why their forecasts are often so daring and their investment tips so "hot". Frequently the text beneath the video also encourages you to book a paid seminar or open an account. And the more attention the clips attract, the higher the likelihood that the bloggers will receive money or commissions from sponsors. At that point there can no longer be any talk of independent or scientifically grounded wealth advice. That is why the Süddeutsche Zeitung, in a commentary, demands: "For years the consumer advice centres have been warning about dubious providers on the grey capital market and doing important educational work. That work would also be sorely needed when it comes to unmasking the black sheep among YouTubers and bloggers."
Conclusion: It's understandable that inexperienced investors feel overwhelmed by these offers and go looking for a way out. But anyone who wants too much too fast ends up, at best, stuck in a subscription trap and, at worst, having gambled away significantly more money on a bad investment.
